Banking reporter

Remember the ''big Australia'' debate? During the last federal election campaign in 2010, it was hard to escape furious arguments about population.

The issue may have faded from the political stage since then, but there are signs we could be heading for a strong pick-up in the number of people living here.

If sustained, this should provide a boost to some of the weakest parts of the economy, including the property market, retail and construction.

Population growth can have a big impact on an economy in the longer term.

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As it shot up to a 40-year peak of just below 2 per cent in the years leading up to 2008, there's little doubt this helped inflate house prices and spark urban congestion.

Since then, however, it's been a roller-coaster ride.

The global financial crisis deterred migrants from coming to Australia, dragging the growth rate to an 11-year low.

Now, after the much-hyped rise in mining investment and all the jobs it will create, population growth has accelerated to 1.49 per cent, its fastest pace since late 2009. This population growth is being driven mainly by immigration rather than higher birth rates. In particular, there's been a jump in the number of migrants coming for resources jobs and a surge in migrants from New Zealand, who do not need a visa to move across the Tasman.

If the growth in population continues, analysts say, it's likely to support the housing market.

Just like lower interest rates should encourage buyers back into the market, the arrival of extra people also spurs demand for housing.

When we aren't building many dwellings - the number of building approvals fell 10.6 per cent in the past year - this also tends to push up prices.

Retail and construction businesses also tend to benefit from the growing number of people who are shopping or looking for somewhere to live.

In the much longer term, economists think more migration may also help ensure we have enough able-bodied workers to support a big jump in the number of retirees.

The shorter-term economic effects, however, are unlikely to be felt evenly across the country.

While most migrants arrive in Sydney or Melbourne, the mining states are growing the fastest.

Western Australia's population expanded by a whopping 3.14 per cent in the past year, which is more than twice as fast as the growth rate of either NSW or Victoria, and an indication that the west of the country is the region that is most exposed to the population roller-coaster.